Regulators eye Crown probe

VICTORIA'S casino regulator said it was ''actively monitoring'' an investigation by Taiwanese authorities into Crown Ltd's Asian joint venture, Melco Crown, as it reviews the suitability of James Packer's casino operator to hold its licence for the Melbourne casino.

The Victorian Commission for Gambling and Liquor Regulation is midway through its mandatory review, which it conducts every five years, to ascertain whether Crown continues to be ''a suitable person to continue to hold the casino licence''.

Melco Crown has been embroiled in an investigation by Taiwan authorities into allegations that a subsidiary illegally circumvented the country's tight foreign exchange controls to allow high rollers to funnel $170 million of gambling funds to Macau.

The head of Melco Crown subsidiary MCE International was questioned by Taiwanese prosecutors and released on bail last week.

''The Victorian Commission for Gambling and Liquor Regulation is aware of media reports of an investigation by Taiwanese authorities into MCE International Ltd and is actively monitoring the situation,'' said a spokeswoman for the regulator.

The VCGLR is due to complete the review and report its findings to the Minister for Gaming by June 30.

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The regulator said the deadline would not be pushed back by any potential developments in Taiwan.

The spokeswoman said monitoring the casino was a continuing function and the VCGLR has broad powers by law ''to commence an investigation into the casino operator at any time''.

In its submission to the commission in October, Crown said it ''has an excellent probity record and is not aware of any issues or investigations that could jeopardise its suitability to hold a casino licence''.

The New South Wales casino regulator would not comment on the Taiwan investigation or whether it was being monitored as it completed its own probity check of Crown, which is seeking to lift its stake in rival casino operator, Echo Entertainment, above 10 per cent.

Mr Packer is actively campaigning for a second casino licence in Sydney to underpin the financial viability of a luxury hotel he is planning to build at the Sydney Harbour development, Barangaroo.

The Independent Liquor and Gaming Authority said it could not comment on the Barangaroo proposal ''as it has no involvement. It has only been asked to consider Crown's application to increase its shareholding in Echo Entertainment beyond 10 per cent.''

According to reports from Taiwan, the country has for several decades been concerned about the transfer of money offshore by its citizens in order to gamble.

Local reports quote a press release from the Taipei Independent Commission Against Corruption that alleges that a company, later identified as MCE, had violated Taiwan's banking law by operating a foreign-exchange business since 2008.

Unauthorised money changers can face prison sentences of up to 10 years.